- Basel Committee approves disclosure framework for banks’ crypto asset exposures and agrees to make targeted amendments to its crypto asset standard.
- Agrees to update the interest rate shock sizes and associated methodology in its interest rate risk in the banking book standard.
- Agrees to consult on updated principles for the sound management of third-party risk.
The Basel Committee on Banking Supervision (BCBS) approved a finalized disclosure framework for crypto asset exposures, which includes a standardized set of public tables and templates covering banks’ crypto asset exposures. These disclosures aim to enhance information availability and support market discipline. The framework will be published later this month, with an implementation date of 1 January 2026.
BCBS also approved a set of targeted revisions to the crypto asset prudential standard. These revisions aim to further promote a consistent understanding of the standard, particularly regarding the criteria for stablecoins to receive a preferential “Group 1b” regulatory treatment.
The updated framework and standard will be published in July with an implementation date set for 2026.
“Members also discussed the prudential implications of banks as potential issuers of tokenized deposits and stablecoins. Members noted that the scale and magnitude of financial stability risks from such products depend in part on their specific structures and jurisdictional laws and regulations. Based on current market developments, these risks are broadly captured by the Basel Framework. The Committee will continue to monitor this area and other developments in the crypto asset markets,” according to a BIS statement.
Interest rate risk in the banking book
The Committee reviewed the comments received on its consultation proposing a set of targeted adjustments to its standard on interest rate risk in the banking book (IRRBB).
It approved a set of adjustments to the specified interest rate shocks in the IRRBB standard, consistent with commitments in the standard to periodically update their calibration. BCBS also agreed to make targeted adjustments to the methodology used to calculate these shocks to better capture interest rate changes during periods when rates are close to zero. The updated standard will be published later this month, with an implementation date of 1 January 2026 for the adjustments.
These changes are unrelated to BCBS’s analytical work on IRRBB following the March 2023 banking turmoil, which is ongoing.
Third-party risk
BCBS agreed to consult on principles for the sound management of third-party risk. The principles would supersede the current guidance on outsourcing in financial services with respect to the banking system. The updated principles reflect the evolution of a larger and more diverse environment of third-party service providers and would help provide a common baseline for banks and supervisors in managing third-party risks. The consultation will be published later this month.
Climate-related financial risks
BCBS reviewed the comments received on its consultation proposing a Pillar 3 disclosure framework for climate-related financial risks. It agreed to continue to work on finalizing such a framework as part of its holistic approach to addressing climate-related financial risks.